Transcript Consultants’ Role in the Growth of the Construction Industry

Challenges, Opportunities &
Accountability of the Ethiopian
Consulting Engineers & Architects
Association (ECEAA)
THE ETHIOPIAN CONSULTING ENGINEERS AND
ARCHITECTS SOCIATION (ECEAA)
• Outline of the presentation
1. Background on ECEAA
1.1 Statutes & Objectives
1.2 Code of Professional Ethics & Rules of Professional Conduct
1.3 Membership of ECEAA
2. Existing situation of ECEAA
3. Challenges & Opportunities
4. Consultants’ Accountability
5. The way Forward
Background of ECEAA
Statutes:
• ECEAA was established in December, 1999
• Registered under the new rules of Societies and
Association Agency
Objectives:
• To provide reliable and complete consultancy services to
customers
• To work towards securing reputable consultancy services
• To promote consultancy services to the Consulting
Engineers and Architects
• To cause the existence , strength, review and observance of
the code of Ethics & Rules of Professional Conduct of
the consultancy services of the Consulting Engineers &
Architects
Background of ECEAA
Powers and duties
• To Cause Strengthening of the quality & reliability of
consultancy services
• To cause issuing and reviewing of the Code of Ethics &
Rules of Professional Conduct,
• To Cause promoting the horizon of the services,
• To Exert all effort toward strengthening the ECEAA
members cooperation, relationship and integrity
• To Cause organizing meetings, conferences, workshops,
seminars,
Consultants’ Role in the Growth of the
Construction Industry
Background on ECEAA
Powers and duties (cont’d)
• To cause submitting ECEAA’s constructive contribution in
creating conducive operating environment for the
consulting engineers and architects services,
• To liaise with relevant stakeholders in order to ensure the
legitimacy of the consulting engineers and architects
services and the powers and duties of the ECEAA,
• To Create and develop working relationship with other
sister associations,
• To arrange favorable condition for members of the ECEAA
when engaged to work abroad,
Consultants’ Role in the Growth of the
Construction Industry
ECEAA Code of Professional Ethics & Rules of
Professional Conduct
•
ECEAA has established the code of professional ethics &
Rules of Professional conduct for its members since
August 2000;
•
ECEAA Services require : Honesty, Impartiality, Fairness,
Integrity, Competence, Equality and Dedication to the
growth of the Construction Industry.
•
ECEAA Members shall perform under a standard of
professionalism requiring adherence of high principles of
ethical conduct to serve the public, clients and the
profession
Consultants’ Role in the Growth of the Construction Industry
ECEAA Membership
 Membership is open to all consultants
i) Road Consultants
ii) Architectural Firms
iii) Water Consultants
iv) Sanitary and Mechanical Consultants
v) Electrical Consultants
 Members pay membership fee – annually
 Members have to accept the code of professional
ethics and rules of Professional Conduct
ECEAA Members Classification
Category
ECEAA
Members
%
CAT CAT CAT CAT CAT CAT Total
1
2
3
4
5
6
7
2
31
10
3
53
14
4
58
19
5
Consultants’ Role in the Growth of the Construction Industry
100
Existing Situations of the Construction Industry
• The construction sector in Ethiopia is growing and taking
on an increasingly significant role in the development of
the Ethiopian economy.
• Construction of roads, buildings, and development
projects in the education and health sector, hydropower,
irrigation, dams, agro-industries and agricultural activities
are being undertaken all over the country.
Existing Situations…… (cont’d)
Major current Construction Sector programs:
•
Road Sector Development programs by ERA and the
Regional Road Authorities
•
The different Universities and higher education
facilities being constructed all over the country
•
Urban Housing Construction projects being
undertaken by MoUD and Construction
•
The 2000 km long railway currently being designed
by local Consultants
Existing Situations (cont’d)

•
•
•
•
•
•
Services Rendered by Consultants
Road Sector – Clients are government bodies like
ERA, and Regional Road Authorities
Feasibility Studies,
Environmental and Social Impact Assessment
Detail Engineering Design Services,
Design Review and supervision services,
Supervision Services
Consultancy in the design/build services with
contractors and clients.
Existing Situations……(cont’d)
• Building Sector
Clients are: i) Public/Government bodies
ii) Private individuals
iii) Others
• Water Sector
Clients are i) Ministry of Water Resources and Energy
ii) Non governmental organizations
iii) Regional water resources bureau
Road Sector --Performances and growth of
Consultancy Services during RSDP I, II& III (13 yrs)
• Out of 434 projects carried out in the past 13 years of RSDPs
64% were by local consultants with growth as follows
• RSDP I ---- 63 projects by local consultants
52 projects by foreign consultants
• RSDP II ----138 projects by local consultants
65 projects by foreign consultants
• RSDP III --- 79 projects by locals
38 projects by foreign
Consultants’ Role in the Growth of the Construction Industry
Road Sector -Performances and growth(cont’d)
 According to ERA
 Consultancy fees for the above projects were 1.6
billion Birr where as the value of the works contract
was 21.3 billion.
 Average consultancy fee 7% of the total project cost
The fees are high because of foreign consultants.
 Presently for local consultants
Average design fee -- about 1 %
Avg. supervision fee – less than 3%
RSDP IV Potential
•
•
•
•
•
Over a period of the coming 5 years, ERA’s RSDP IV plan
is expected to accomplish
Rehabilitation of trunk roads………………728 km
Upgrading of trunk roads ……………………1089 km
Upgrading of link roads……………………….3934 km
Construction of link roads …………………..4331 km
Periodic maintenance of roads…………….4700 km
These figures do not include those carried out by Regional
Road Authorities and Woredas.
Consultants’ Role in the Growth of the Construction Industry
Total Projected demand in Billions ETB
Under the RSDP IV Program.
The estimated cost for the Road Sector works in
the five year GTP is around 125 Billion Birr
Challenges of ECEAA
The general state of the domestic construction industry in
Ethiopia is characterized by :
• According to the Licenses and Registration office renewed
licenses for the current year include about 102 Highway
and Bridge Consultants (HBC) and Consulting Architects
and Engineers (CAE) with grades ranging from 1 to 5
• According to ERA in its recent introduction of RSDP IV
the number of consultants participating in the road sector
is 25 with a plan to increase their number to 50.
•
IS IT POSSIBLE TO DO SO?
Challenges of ECEAA (cont’d)
To obtain licenses it is required to have the
following professionals for the different categories
and grades of consultants.
The question is are there sufficient number of
professionals for 50 Consulting Firms.
Professionals needed in Licensing of Consultants
Highway and Bridge Consultants
Type of Professional
Gr.1
Gr.2
Prac. Prof. Highway Engr.
1
1
Prof. Location Engr.
1
-
Prof Road Engineer
1
-
Prof Material Engr.
2
1
Prof. Geologist
1
1
Prof Photogrammetrist
2
1
Prof. Bridge Engr.
2
1
Prof. Road Constr. Engr.
Gr.3
Gr.4
Gr.5
1
1
1
1
1
1
1
1
1
Gr.6
LICENSING REQUIREMENTS
 Grade 1-5 Consultants need
Practicing Professional Highway Engineer
Professional Material Engineer
 Grade 1-3 Consultants need additional
 Professional Bridge Engineer
 Professional Photogrammetrist (required for Gr. 1&2)
Challenges of ECEAA
• Shortage of Qualified Professionals and lack of
commitment,
• Deficiencies in technical, managerial, financial
and entrepreneurial skills,
• Limited experiences and participation in road and
bridge works, or provision of related consulting
services.
• Low Service fees & absence of minimum fee rates
• Difficulties in managing design or supervision
assignments due to the shortage of experienced
engineers/or staff leaving before the end of a
project without valid reasons
Challenges of ECEAA
• Inadequate availability of references
Topographic maps, EMA maps are more than 60
years old.
Geological Maps,
Soil and Geotechnical related information
• Lack of modern equipment & instrument in the local
market,
• Lack of investment incentive(duty free privileges ) for
consultants to import the necessary 4x4 field vehicles,
laboratory & surveying equipments, software and
computers, instruments and publications.
• Lack of comprehensive capacity building interventions
for the Consulting Industry
Challenges of ECEAA
Client – Consultant Relationship is aggravated by
Lack of professionalism
Shortage of qualified Staff
Unreasonably low price
 Consultant – Contractor Relationship
 Not healthy
 Not professional and
 Unethical
 Evaluation of Consultants by ERA
(Will be dealt with later)

ECEAA Opportunities
 Growing market in the construction sector – roads,
building, water , power telecom
 Growing market share of National consulting Engineers in
the consulting business
 Development of the construction sector policy.
 Development of encouraging private-public Dialogue and
partnership with the stakeholders,
 Development of the special consultative meetings of
ECEAA with ERA to design common working procedures
and streamline issues arising in the implementation of
projects
 Improving enabling environment in the construction
sector.
Consultants Accountability
 Brief Notes on ERA’s Proposal on Consultants’
accountability
ERA is saying that Consultants should be accountable
for their performances and out put in areas of :i)
ii)
iii)
iv)
Surveying works,
Estimation of quantities,
Poor Quality of design
Improper Contract Documents
Consultants Accountability (cont’d)
 ERA is making consulting firms and professionals
accountable for their inadequate design and
supervision and the costly output as a result.
 ERA requires from Consultants risk free designs,
 ERA requires no errors in surveying works and ,
 Requires Consultants to be custodians of GPS and BMs
until construction begins.
 ERA requires earthwork quantities, structures, and
other BoQ items to be worked out accurately.
 No increases or decreases of quantities are accepted –
No safety factor or “ No Factor of Ignorance is allowed.”
Consultants Accountability (cont’d)
 ERA requires water tight contract documents,
 ERA requires designs to have no cost overrun
 ERA requires designs not to result in extensions of
contract time.
 If a consultant commits any of the above errors
 ERA is proposing punitive measures that will bar
consultants and professionals from participating in the
sector for as much as 1 - 3 years.
Consultants Accountability (cont’d)
 What do Consultants think about “ the Proposal on
Accountability”
 Consultants say there can not be a 100% problem
or error free design.
 Consultants can not be responsible for the well
being of survey GPS and BMs monuments after
completion of designs.
 Consultants say major factor in producing designs
with problems is INSUFFICIENT TIME given for
designs
 Lack of feeling of partnership b/n ERA &
Consultants
 Lack of healthy communication b/n ERA &
Consultants
Consultants Accountability (cont’d)
 Steps showing where
Director General
the punishment is
Initiated and where
DDG Engineering
It is getting approval.
 Starts at project
Director
Regions
Director
Counterpart desk
Project
and goes up to the DG.
Counterpart
• Consultants are not in the picture and hence seems no
chance of defending themselves or their work.
The way forward
 Collaborate with government & development agencies in
designing a comprehensive and practical capacity building
scheme for the development of the Domestic Construction
Industry (DCI)
 Creating various opportunities for the development of
ECEAA members through training, diversification and
networking
 Be provided on – the – job training and advisory services to
the consultant Engineers(CE) involved in the multi-year
construction – capacity building program.
● Actively engage in public-private Dialogue for addressing
ECEAA issues and constraints by taking advantages of the
conducive atmosphere created.
 Strengthen consultative committee of ERA and ECEAA to
discuss in detail the accountability issues. WE ARE READY.
Thank you for your attention !!!!
Consultants’ Role in the Growth of the
Construction Industry